WASHINGTON— Thirty-two attorneys general from states, territories and Washington, D.C., are urging Congress to pass legislation that would shield financial institutions from penalties if they provide services to marijuana-related businesses operating legally under state law.
The letter is just the latest effort to get Congress to eliminate the federal prohibition on cannabis that has led most credit unions to avoid the business. The CU trade groups, along with those representing the banking industry and the cannabis industry, have all been advocating for the change since the first states began to legalize marijuana in various forms.
‘Public Safety Risks’
In a letter to congressional leaders and members of key banking committees, the attorneys general noted many legal operators are forced to rely heavily on cash, creating public safety risks.
“States continue to consider and implement legalization efforts, [but] the lack of access to America’s financial system by cannabis businesses – which is a direct result of federal banking law – presents a considerable safety issue for the public,” the letter states.
The AG group, which described itself as bipartisan, stressed the need to “protect the physical and economic wellbeing” of constituents while supporting economic growth.
Mellowed Out in the Senate
As the CU Daily has reported, the proposed Secure and Fair Enforcement Regulation Banking Act (SAFER Act) has passed the House multiple times but has stalled in the Senate.
According to the attorneys general, cannabis companies are unable to access commercial loans, credit lines, payroll services or merchant processing. State agencies, they said, have been turned away by banks when trying to deposit tax and fee payments from licensed cannabis operators.
Without reform, the letter warns, governments could lose out on hundreds of millions of dollars in tax revenue generated by the industry.
Where Things Stand Now
Currently, 39 states, three territories and the District of Columbia permit medical use of cannabis products. Twenty-four states, two territories and D.C. allow regulated adult-use cannabis. The industry reported $30.1 billion in retail sales in 2024, up 4.5% from the previous year, and supports about 425,000 jobs, according to the letter.
The attorneys general emphasized the measure would not legalize marijuana nationwide or alter laws in states that have not approved cannabis sales.
